Kumba Iron Ore sold more iron ore than it produced in the third quarter, drawing on finished stock while the main tie-in of its ultra-high-dense-media-separation project shut part of the Sishen plant. Total production fell 19 percent year on year to 7.5 million tonnes, with Sishen down 22 percent to 4.9 million tonnes on the planned dense media separation plant shutdown and Kolomela down 12 percent to 2.6 million tonnes on low plant feedstock. Sales rose 3 percent to 9.7 million tonnes in Anglo American’s production report, supported by the planned drawdown of finished stock, which fell to 5.1 million tonnes from 7.0 million tonnes in the second quarter.
Pricing held up better than volumes. Kumba’s average realised export price for the year to date was 86 dollars per wet metric tonne free on board, 9 percent above the Fastmarkets 62 percent Fe benchmark of 79 dollars, reflecting premiums for high iron content and a rising lump premium. Year to date iron content averaged 63.6 percent and the lump to fines ratio was 67 to 33. Chief executive Mpumi Zikalala said market conditions softened through the quarter as weaker Chinese steel production, compressed mill margins and strong seaborne supply weighed on prices.
Guidance is unchanged. Kumba expects full year production of 31 million to 33 million tonnes and sales of 35 million to 37 million tonnes, with sales expected toward the upper end, and the 11.2 billion rand UHDMS project at Sishen remains within capital guidance with completion expected before the end of 2026. The project is the core of Kumba’s quality strategy: upgrading more of Sishen’s output into premium lump product is how the company defends its realised price premium as benchmark prices soften.
In the wider Anglo American quarter, premium iron ore production including Minas-Rio in Brazil fell 4 percent to 13.8 million tonnes, copper production fell 5 percent to 174,900 tonnes on extreme winter weather in Chile, and the group cut Copper Peru unit cost guidance to about 50 cents a pound from about 65 cents on by-product credits. Anglo American said its merger with Teck is progressing with China’s antitrust review the final outstanding regulatory milestone and expected completion by March 2027 unchanged.